Recruitment is a key stage in the employee lifecycle. At a basic level, recruitment is about enlisting people to join a group. But, it should be more than that. Without the right talent to meet business needs, the organization as a whole will suffer. You want to make sure you hire the best talent for the right roles.
Recruitment metrics provide a way of measuring the success of your recruitment efforts. They will also provide warning signs for when your processes might be falling short. Here are 5 important metrics to help you track your recruitment processes.
Cost-Per-Hire breaks down how much your spending to source and recruit new talent. When calculating this number, take into consideration both internal and external costs. An internal cost would the salaries of the recruitment team or referral and signing bonuses. External costs include external job board postings or job fairs.
Tracking this metric will help determine if you’re spending money in the right places. Use this metric in conjunction with other metrics like quality-of-hire to make sure the high cost of attending those job fairs is worth it.
Time-to-fill calculates the total number of days it takes for a recruiter to fill a position from the time it is posted. Longer time-to-fills are a sign of breakdowns in the recruitment process. But, very short time-to-fills might indicate low quality of hires. Compare your time-to-fill with industry benchmarks and your quality of hire metrics.
Offer Acceptance Rate
Offer acceptance rate gives the number of offers that are being accepted once a qualified candidate is identified. Low acceptance rates can indicate your pay and benefits are not attractive to talent. The candidate may have also not liked the interview process or members of the interview panel. Low acceptance rates will impact other metrics like time-to-fill.
Quality-of-hire can be a bit more of a subjective metric. It will vary based on what you decide to be important. You will have to first determine what indicators will show someone is performing to meet the business needs. Once created, you can use performance scores as a way to measure quality-of-hire. You can also look at involuntary turnover as an indicator as well. Low quality-of-hires will increase turnover and end up costing the organization more money in the long run.
New hire turnover
New hire turnover is not solely just a recruitment issue, but can still provide valuable insight. Turnover in the first few months of an employee’s tenure can be due to poor quality of hire and a lack of cultural fit. Dive deeper into why people are leaving through exit interviews, especially with resignations. You may want to consider a better interviewing process or train your hiring managers to ask better questions. New hire turnover can also be an indication of a poor onboarding experience. New hires need proper training and guidance to ensure acclimation to the organization.
An HR dashboard provides one centralized place for all your metrics. It’s a tool to help collect your data from multiple HR systems into one place and automatically calculate the metrics.